Australia has a concentrated, well-capitalised banking system and a large superannuation and funds management industry. It runs a twin-peaks model: APRA licenses and prudentially supervises authorised deposit-taking institutions (ADIs), while ASIC licenses financial services, including margin FX and CFD providers, under the Australian Financial Services Licence (AFSL).
Risk flagStandard
FATFNot listed
EU AML high-risk listNot listed
EU tax listNot listed
Licence regimes7
CurrencyAUD
S&P ratingAAA
Next electiondue by 2028
Not on the FATF grey or black lists after the June 2026 plenary, not on the EU high-risk third country list (Delegated Regulation (EU) 2016/1675 as amended, latest by Delegated Regulation (EU) 2026/46), and not on Annex I of the EU tax list updated 17 February 2026. Checked 7 October 2026.
Government and politics
Government
Federal parliamentary constitutional monarchy
Monarch (represented by Governor-General Sam Mostyn since 2024-07)
King Charles III · since September 2022
Prime Minister
Anthony Albanese (Australian Labor Party)
Governing parties
Australian Labor Party
Last election
Federal election (House of Representatives and half Senate), 3 May 2025
Next election
Federal election, due by 2028
Legislature
Parliament: House of Representatives (150 seats) and Senate (76 seats)
Legal system
English common law
Economy and finance
Population
27.6m (2025)
GDP
USD 1.8tn (2025)
GDP per person
USD 66,352 (2025)
Currency
Australian dollar (AUD), floating
Central bank
Reserve Bank of Australia
Credit rating
S&P AAA (stable) · Moody's Aaa (stable) · Fitch AAA (stable) (as of August 2026)
A high-income, commodity-exporting economy selling iron ore, coal and LNG mainly to East Asia, with Sydney as a major Asia-Pacific financial centre and one of the world's largest pension (superannuation) pools.
Bank
Authorised deposit-taking institution (ADI) licence, direct pathway
Minimum capitalUSD 10.4m
TimelineNot published
AuthorityAPRA
Initial capital immediately before licensing of the higher of forecast operating expenditure for the next nine months or AUD 15 million; ongoing prudential capital requirement of the highest of six months' forecast opex, AUD 10 million or the RWA-based amount (APRA new entrants framework)
Law
Banking Act 1959 (Cth), s 9
Passporting
No passporting; foreign banks may apply for a foreign ADI (branch) licence limited to wholesale deposits
Key requirements
Early engagement with APRA before lodging an application
Capital instruments eligible as regulatory capital (Common Equity Tier 1)
Credible business plan, governance, fit and proper persons and risk management framework
Meet the full ADI prudential framework from licensing
Use of the words bank, banker or banking requires ADI status or APRA consent
Australian Financial Services Licence for non-cash payment facilities
Minimum capitalNot published
TimelineNot published
AuthorityASIC
Law
Corporations Act 2001 (Cth), s 911A; non-cash payment facility is a financial product (s 763D)
Passporting
No passporting
Key requirements
Base financial requirements under RG 166: solvency, positive net assets and cash needs; at least AUD 50,000 in surplus liquid funds if holding client money or property above set thresholds
Organisational competence through nominated responsible managers
Adequate financial, technological and human resources and risk management
Dispute resolution (AFCA membership) and compensation arrangements
Some stablecoins are treated by ASIC as non-cash payment facilities (INFO 225)
Digital assets that are financial products (for example many wrapped tokens and yield-bearing stablecoins) need an AFSL and, for trading venues, a market licence
ASIC accepts a combination of responsible managers for regulatory and digital asset competence as a transitional approach
ASIC class relief for distributors of eligible stablecoins and wrapped tokens (Instrument 2025/867)
Exchanges must register with AUSTRAC and run an AML/CTF program
Australian Financial Services Licence (dealing, advice, custody, managed investment schemes)
Minimum capitalUSD 35k
TimelineNot published
AuthorityASIC
Varies by activity under RG 166; for example adjusted surplus liquid funds of AUD 50,000 plus 5 percent of adjusted liabilities between AUD 1 million and AUD 100 million for licensees required to meet the ASLF test
Law
Corporations Act 2001 (Cth), s 911A and s 912A
Passporting
No passporting
Key requirements
Efficient, honest and fair conduct obligation
Responsible managers with relevant knowledge and skills
Financial requirements under RG 166 tailored to the licensed activities
AFCA membership and compensation arrangements for retail clients
AFSL for issuing retail OTC derivatives (margin FX and CFDs)
Minimum capitalUSD 694k
TimelineNot published
AuthorityASIC
Net tangible assets of the greater of AUD 1 million or 10 percent of average revenue, held 50 percent in cash or cash equivalents and 50 percent in liquid assets
Law
Corporations Act 2001 (Cth), s 911A; ASIC Corporations (Financial Requirements for Retail OTC Derivative Issuers) Instrument 2022/705
Passporting
No passporting
Key requirements
Rolling 12-month cash flow projection each quarter, approved by the board
NTA reporting with reporting triggers
Tailored audit requirement
Client money handling and product governance obligations
Australian Prudential Regulation Authority (APRA) · websitebanks, E-money institutions, Insurance
Australian Securities and Investments Commission (ASIC) · websitePayment service providers, Virtual asset service providers (VASPs), Investment firms, FX brokers
Australian Transaction Reports and Analysis Centre (AUSTRAC) · websiteVirtual asset service providers (VASPs), Payment service providers
Australian Communications and Media Authority (ACMA) · websiteOnline gaming
Reforms: as at ASIC's October 2025 update of INFO 225, the Government was consulting on exposure draft legislation to create digital asset platform and tokenised custody platform financial products, and on a new licensing framework for payment service providers that would cover certain stablecoins; we did not confirm whether either has been enacted or commenced as of 2026-10-07. AUSTRAC pages could not be loaded, so registration details and the timing of the 2024 AML/CTF amendments for virtual asset service providers were not verified. Gaming: under the Interactive Gambling Act 2001, administered by ACMA, online casino-style games and in-play online sports betting may not be offered to people in Australia; online wagering and lotteries are licensed by the states and territories. ADI licensing has no statutory timeline; APRA's initial capital floor of AUD 15 million comes from its new entrants framework rather than legislation.
General information
About Australia
Natural Earth boundaries. Map is indicative.
Status
Sovereign state
Capital
Canberra
Largest city
Melbourne
Area
7,741,220 km²
Official languages
English
Time zone
UTC+10:00 (UTC+11:00 in summer); capital; mainland spans UTC+08:00 to UTC+10:00
Main exports
iron ore
coal
natural gas
gold
minerals
Main export partners
China
Japan
South Korea
India
Taiwan
Sources for the country information(9)
Country information checked 9 October 2026. Licensing data updated 7 October 2026. Information only, not legal advice; requirements change. Regulatory notice.
